The Importance Of Pay Day Loans

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Paying for college is already hard and if you 're like most college students who are in the process of taking out students loans, there are some steps that you need to follow to get approved. In this article, we 'll discuss how to get your college loan application approved. Are you ready? Let 's begin. Ask yourself some questions. Before choosing a loan you should consider and ask yourself some question. You should ask yourself, what kind of loan do I need? How much money do I need to borrow? How much is the interest rate on the loan? These are questions that you should ask before you ever apply for a college loan. Know the facts. There are basically two types of loans that are offer to college students, government or private student loans. …show more content…
These are loans that just about anyone with a job and a bank account can get.Because pay day loan companies do not ask questions and many do not do credit checks many are tempted to turn to pay day loans when they fall short of cash or encounter an emergency situation.. I am not saying noone should ever take a pay day loan. I am saying there are certain situations where ANY other option is better than a pay day loan. Here is a pay day loan example that describes just the type of situation you would want to avoid. Jenny 's car breaks down and the bill is going to be five hundred dollars. When she calls about a pay day loan she decides to borrow more than the amount due on her car so that she will have an emergency fund in case she has money troubles in the future. She is a real estate agent, needs her car to go to work and earn money and is sure she will make a sale soon. She borrows $1,500. Initially Jenny is happy about her decision. She is able to pay the mechanic and get back to work. Then the deal that Jenny was sure would go through falls apart. The pay day company is taking $250 dolars from her account each month but with an interest rate of over 95%, Jenny realizes thst she will have to pay this monthly fee for ten years to satisfy the debt! Not only that, the "extra" she borrowed is sitting in her savings account earning 2% interest but all the while she is paying 95% interest on it. The first things he should do is send back that thousand dollars, next she should borrow five hundred from wherever she can and pay the loan off. Till she does she will keep paying $250 a month..but her capital debt will be decreasing by such a small amount that she wil pay that for a full decade before she no longer owes, even though in ten months she will have given them $2,500 , a full thousand dollars more than she borrowed!. Until any "Jenny" can find a way to come up with that lump sum, here of $1,500, she will continue to pay

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